Back in Oct I mentioned that I expect that FY17 EBITDA would be above $130m. The 2Q production and revenue report stated:
Following a strong revenue performance to date Infigen now expects FY17 EBITDA to be approximately $140 million. The expected $4 million profit on the sale of the Manildra solar development project would be in addition to this. Further details of the factors contributing to EBITDA guidance will be provided in the FY17 interim financial results materials.
I'm guessing that nothing but sentiment (Trump, ERM's recent decision to pay penalty pricing instead of buying LGSc) is the reason why this is still trading at below $1.20 per share. But the earnings are there and they're paying off debt quickly with them. Quite simply they are printing cash at a rate which isn't reflected by the share price. This is where the best stock market wins can be made.
Hopefully they refinance their global debt facility by the end of this year. I see this as being the catalyst for getting these shares to become fully valued. In the meantime I'm still acquiring with all my free cashflow!
IFN Price at posting:
$1.02 Sentiment: Buy Disclosure: Held
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